US health insurer WellPoint has agreed to shell out$90m as a compensate amount to settle a class action lawsuit brought on behalf of more than 700,000 former members of Anthem Insurance Companies.
WellPoint,the corporate parent of Anthem said that the settlement will resolve the case filed in 2005 by those Anthem members who received cash compensation as part of the conversion process,if the deal is approved by US District Judge Tanya Walton Pratt.
The members accused that the underwriter failed to compensate the former mutual company members the fair value of their membership interests.
Attorney Eric Zagrans stated,"Our clients were the owners of Anthem before it demutualized in 2001,and they were entitled to receive cash compensation equal to the fair value of their ownership interests when the company converted from a mutual company to a stock corporation.The Court ruled that their claims of breach of fiduciary duty and negligence against Anthem were worthy of a jury's consideration."
Co-Class Counsel Kathleen DeLaney said,"The$90 million settlement is one of the largest ever reported in the State of Indiana.The Court certified a class of more than 700,000 residents of Indiana,Ohio,Kentucky and Connecticut.Plaintiffs'legal team fought hard to help the class members obtain this$90 million cash settlement."
The trail of the case was scheduled on 18 June 2012,against the allegation that Anthem failed to pay fair value to its insured policyholders.